The Fed uses three policy tools to manipulate the money supply: open market operations,which affect the ________; changes in borrowed reserves,which affect the ________; and changes in reserve requirements,which affect the ________.
A)money multiplier; monetary base; monetary base
B)monetary base; money multiplier; monetary base
C)monetary base; monetary base; money multiplier
D)money multiplier; money multiplier; monetary base

Question

Quizplus · Accepted Answer

Open market operations affect the monetary base, changes in borrowed reserves affect the monetary base, and changes in reserve requirements affect the money multiplier.

The Fed Uses Three Policy Tools to Manipulate the Money